STAND. COM. REP. NO. 904

Honolulu, Hawaii

RE:    S.B. No. 1718

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1718 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR ELECTRICAL GENERATION ON THE ISLAND OF MAUI,"

begs leave to report as follows:

     The purpose of this measure is to support the development of renewable and efficient energy systems in the State.

Specifically, this measure authorizes the Department of Budget and Finance to issue special purpose revenue bonds to assist BlueEarth Maui Biofuels, LLC with the construction of a biodiesel refinery on Maui with primary production volumes designated as fuel for electrical generation.

Comments in support of this measure were submitted by the Department of Business, Economic Development and Tourism and Hawaiian Electric Company.  The Department of Budget and Finance submitted comments.

Your Committee finds that this measure will help meet Hawaii's goals for energy efficiency and renewable energy use by reducing dependency on imported fossil fuels, providing biodiesel at competitive prices, and stimulating the local production of ethanol.  The bill will also encourage local agricultural research, development, and cultivation of renewable energy feedstock crops.

Your Committee finds that the issuance of special purpose revenue bonds under this measure is in the public interest and for the public health, safety, and general welfare.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1718 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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ROSALYN H. BAKER, Chair